Welfare accounts: Balancing fiscal responsibility and social justice?

Globalisation, ageing and structural changes challenge social security systems in high-income countries. We explore welfare accounts as a social policy innovation, addressing a gap in the literature by summarising how welfare accounts function across countries. We contribute to the theoretical discussion on social security reforms by asking: could welfare accounts help address the growing fiscal strain and the carrying-capacity challenges posed by ageing populations? The comparative literature and structured expert interviews suggest that welfare accounts offer a socially just solution, as they do not impact those receiving social assistance or last-resort benefits. The strength of welfare accounts lies in flexibility: while comprehensive adoption of welfare accounts is not necessarily sensible, selective implementation could potentially help to address the challenges of ageing welfare states.